Exclusive – LH Cargo Breaks New Grounds

Executive Board Member Product and Sales Alexis von Hoensbroech  -  courtesy LH Cargo
Executive Board Member Product and Sales Alexis von Hoensbroech - courtesy LH Cargo

LH Cargo has had enough of dire times with profits going south month after month. To get the carrier back on track the management decided to turn the tide towards achieving competitive cost structures, up revenues by introducing innovative products and push the digitization of processes ahead.

Too sophisticated structures, too costly operations, too overstaffed. Lufthansa Cargo has been facing this kind of unholy trinity for quite some time as operational and financial data prove. Therefore, the management’s decision to taking a U-turn was overdue in order to securing the freight carrier’s future, hold market analysts.

 

Cargo eVolution
The freight carrier’s new bearer of hope is a scheme named “Cargo eVolution.” It embraces the former strategy “Lufthansa Cargo 2000” and is aimed at modernizing structures, streamlining processes, developing a leaner organization and saving €80 million each year, including, inter alia, the reduction of up to 800 headcount out of a total workforce of 4,500. Read more>

IATA and FIATA Agree on New Cargo Program

Today (18 July) both organizations have announced the implementation of a new IATA-FIATA cargo scheme (IFACP) replacing the outdated IATA Cargo Agency program. It is based on the recognition that over decades freight forwarders have evolved from being airline “sales agents” to their “purchasing customers.”

The new program moves decision-making on the rules governing the airline-forwarder relationship away from an airline-led conference to a governance body - the IATA-FIATA Governance Board - jointly managed by forwarders and airlines, which reflects which reflects today’s market conditions. “The IFACP provides a framework to ensure that industry standards are relevant, pragmatic and fit for purpose. These standards cover the endorsement of freight forwarders and more broadly the safe, secure and efficient transportation of air cargo shipments”, commented Aleks Popovich, IATA, Senior Vice President, Financial and Distribution Services. Read more>

BRU Airport’s Cloud Platform is Taking Shape          PART 1

Jean Verleyen, CEO of Nallian  -  picture ms
Jean Verleyen, CEO of Nallian - picture ms

At this very moment, cloud-based collaboration is already taking place at Brussels Airport. Eventually, the entire community will jump onto the wagon, says Jean Verheyen, founder & CEO of technology provider Nallian. This is for the benefit of all participants, particularly truckers who will get fixed slots for loading or unloading their vehicles at BRU.

Jean is former SVP of Porthus, which was sold to Descartes in 2010. Based on his experience he designed a set of principles on how to better data-based collaboration. Inspired by what prospective users told him, he integrated innovative technology from the cloud and social media world, merged it with good old solid B2B technology, and created Nallian’s data sharing platform, a platform truly designed for collaboration within communities of independent companies. Read more>

China Eyes Civil Version of Y-20 Heavy-lift Transporter

Civil version of military Y-20 transporter is being developed
Civil version of military Y-20 transporter is being developed

China's state-owned aerospace and defense firm, Xi'an Aircraft Industry, a subsidiary of Aviation Industry Corporation of China (AVIC), has delivered the first domestically developed AVIC Y-20 heavy-lift transporter to the Peoples Liberation Army Air Force (PLAAF). Read more>

Frankfurt Cargo Services Handles WOW in FRA while Aerotrans is Cargo GSA

Since June 2016 the low-cost airline from Iceland has been flying 6 times per week to Frankfurt.
On 2nd of June FCS Frankfurt Cargo Services GmbH has been charged with the cargo handling for WOW air from Reykjavik. The airline founded in November 2011 has increased its network considerably by adding the route to Frankfurt. Read more>

SHORT SHOTS

IN BRIEF, THE LATEST AIR FREIGHT INDUSTRY NEWS. Read more>

Rhenus, Sankyo form JV in Japan

Rhenus has more than 500 business locations worldwide  -  company courtesy
Rhenus has more than 500 business locations worldwide - company courtesy

Germany-headquartered logistics services provider, Rhenus Group has launched a Japanese joint venture with Sankyo Corporation, named Rhenus Sankyo Logistics K.K.. The joint venture will offer international freight forwarding services, as well as domestic warehousing and distribution services. Rhenus will hold two thirds of the shares in the new entity.

 

The Asia division of Rhenus and Sankyo’s Americas' subsidiary Clearfreight have been working together for a number of years. Read more>

U.S. Carriers Gearing up for Cuba Operations

AF-1 with U.S. President Obama on board was the first U.S. aircraft landing on Cuban soil after decades of hostile relations. Many more are expected to follow.
AF-1 with U.S. President Obama on board was the first U.S. aircraft landing on Cuban soil after decades of hostile relations. Many more are expected to follow.

The United States Department of Transport (DoT) has named eight U.S. carriers which they intend to allocate traffic rights to for flights from mainland USA to Cuba’s capital city airport, Havana international.
More than a dozen airlines in total applied for operating rights for passenger and cargo operations, all of them being passenger carriers operating with different types of medium sized equipment, but also with ample belly space for possible cargo carriage due to the many short sectors involved. The fate of some of the remaining applicants is still pending, although some have been refused by the DoT. Read more>

China Post Inks Cross-border Pact with Lazada

Maximilian Bittner, CEO of Lazada Group
Maximilian Bittner, CEO of Lazada Group

China Post Group, China's state-owned postal service provider, and Singapore-based e-commerce provider Lazada Group, a leading online shopping and selling site in Southeast Asia, have signed a strategic agreement to enhance cross-border logistics solutions for Chinese sellers on the Lazada platform.

 

In a statement, China Post said the agreement will also involve cooperation in warehousing, finance, training, market expansion and other fields.

Read more>

Exclusive - ECS Flexes its Muscles in Southeast Asia

ECS Chairman & CEO Bertrand Schmoll (center) welcomes AVS GSA exects Thomas Ong (standing left) and Monchai Jirakiertivadhana joining the ECS Group  -  courtesy ECS
ECS Chairman & CEO Bertrand Schmoll (center) welcomes AVS GSA exects Thomas Ong (standing left) and Monchai Jirakiertivadhana joining the ECS Group - courtesy ECS

The French general sales and service agent European Cargo Services (ECS) has acquired a majority stake in Southeast Asia’s AVS GSA Group for an undisclosed amount, thus strengthening its position in that regional market. In a joint statement, the partners speak of common interests and their ambitions to knit the world-spanning network of ECS even tighter.

 

AVS GSA is the latest name standing on the long acquisition list of Paris-based European Cargo Services in its stride to take the pole position in the race to become the world’s leading cargo sales agent. The integration of the Southeast Asian firm is a decisive step in ECS’s long-term strategy to penetrate growth markets even further. Mandate airlines benefit particularly in two ways: they not only get services based on equal standards but can gain additional revenues by capitalizing on shipments shifted on behalf of ECS from one of their client carriers to another when transferred at mutually served hubs. Read more>

Zhengzhou on Way to Becoming China’s Centre of Logistics

Futuristic Zhengzhou Airport becomes the centerpiece of the Free Trade Zone  -  image ZACEEZ
Futuristic Zhengzhou Airport becomes the centerpiece of the Free Trade Zone - image ZACEEZ

Its dimensions are breathtaking: The Zhengzhou Airport Comprehensive Experimental Zone (ZACEEZ), located adjacent to Henan’s central airport stretches over 415 square kilometers. The project resembles the total size of Vienna (414 km²), Tampa, FLA (441 km²), Yokohama (437 km²) or Casablanca (386 km²). The aim is to put the Chinese province Henan on the global map as the leading centre for trade and logistics services. Read more>

New Cargo Airship Product Getting off the Ground

Will alike Cargo Airships soon become a common sight at the skies? Courtesy of Straight-line Aviation / Hybid Enterprises
Will alike Cargo Airships soon become a common sight at the skies? Courtesy of Straight-line Aviation / Hybid Enterprises

Quite a few have tried in the past decade to re-invent or bring back airships as a means of cargo transport in order to serve the “heavy-load“ industry which could best make use of this mode of transport.
It now seems that a breakthrough is in the offing through Lockheed Martin, the USA based aircraft design and manufacturing company. Read more>